Pelorus Equity Group, a financier for marijuana real estate, is set to advance close to $17 million dollars to a pharmaceutical company that is committed to developing federally compliant cannabinoid- based medicine for veterans and first responders. In the U.S.
Royal Emerald Pharmaceuticals (REP) is a veteran owned pharmaceutical company that develops non-addictive medications to help veterans and first responders deal with chronic pain, PTSD, and other complications that may be as a result of the nature of their work. The company that was founded in 2017 has plans to purchase a 94,000-square-foot building that is located in Desert Hot Springs, California. Pelorus Equity Group will lend to Emerald Pharmaceuticals close to $17 million to finance this venture, as was first reported by MJBizDaily. This new facility will be dedicated to researching and developing THC and CBD based treatments that are federally compliant. This new treatment should provide a safe, effective, and alternative treatment for conditions such as chronic pain, depression, anxiety, opioid addiction, and other life threatening conditions that may be experienced by war veterans and first-responders.
In December 2022, Emerald Pharmaceuticals received not one but four federal licenses allowing the company to research, develop, and produce alternative and effective medications from cannabis and other botanicals. The company is committed to developing safe, effective, and non-addictive medications by harnessing Active Pharmaceutical Ingredients (APIs) from botanicals.
With this financing, REP will be able to expand their operations in a high-tech cultivation and research facility. Pelorus Group, which made the announcement last Tuesday, did not divulge the exact terms of the financing. They however mentioned that once this new facility commences operations, the pharmaceutical “will be able to ship its medical cannabis products across state lines and into international jurisdictions upon completion of the Desert Hot Springs facility.” Currently, transporting cannabis across state lines is prohibited, since cannabis (containing more than 0.3% THC) is illegal. But with the federal licenses, REP may be able to do this, this is a big win for the industry.
In the past, the Pelorus group has financed real estate for the cannabis industry through a tax-efficient Real Estate Investment Fund (REIT) with a lending capacity of up to $250M. Since inception in 2016, the company has facilitated transactions worth over $2 billion in cannabis commercial real estate transactions. MyCannabis interviewed the President of Pelorus Equity Group Rob Sechrist last month. Read the full story here.